Revenue sharing: Revenues must be equitably shared between copyright owner and original creator(s). [principle explained]

Unattributable income: Some
deals generate revenue that cannot be attributed to specific musicians
at the time the initial deal is executed. Unattributable income, such
as advertising revenue, advances, delivery charges for online content,
bulk catalogue licensing, revenues from covenants not to sue on your
catalogue, and the value of non-monetary items such as free advertising
or equity stakes, must be fairly apportioned between the copyright
owners and the creators of the music that is being licensed in the
deal. [principle explained]

Complete and accurate reporting: Reporting
is essential to enable a distribution of receipts. Because sample and
survey reporting shortchange smaller and niche musicians, revenues must
be paid based on the actual use of a work and tracked using census
data/reporting to the greatest extent possible. [principle explained]

Direct payment: The
creators’ share of the revenue must be paid directly to the creator or
its collective agent, not to the copyright owner for redistribution.
Except where otherwise prohibited, musicians can assign the right to
receive this income provided that the musician receives an accounting
statement directly from the third party user or collective agent to
ensure that the assignee appropriately accounted for this revenue. Any
assignments to copyright owners, when permitted, must be limited to a
period of 3 years from the date the licensed work is published. [principle explained]

Equal access to new models: All
musicians and copyright owners must have equal access to these new
models. An indie or unaffiliated musician must be able to license
music to new services. While services should be able to experiment
with variable pricing and offer different marketing opportunities
depending on the level of the artist or based on the size of catalogue,
for items on the same service and with the same retail price, indie and
unaffiliated musicians should receive the same per download or per
stream payment as major label musicians. [principle explained]

Lawsuit or settlement monies:
All monies received as a result of copyright infringement claims
brought by copyright owners, or resulting from their covenants not to
bring claims, must be shared with the musicians who created the
underlying works. [principle explained]

Best effort to pay creators: The
agency or organization designated to collect revenue shall make every
reasonable effort to locate and identify creators who are entitled to
receive a portion of the revenue collected. [principle explained]

Transparency

Accurate accounting: Tracking/accounting figures and calculations must be detailed and transparent, and the license terms must be clearly defined. [principle explained]

Right to audit: All revenue recipients, including creators, shall have audit rights. [principle explained]

Governance

Equal representation on governing board: Creators
must have the same level of representation as copyright owners on any
entity that collects licensing revenues for music, such as licensing
and collection societies. To the extent decisions on licensing,
distribution of revenues, other expenditures of collected funds, or
resolution of disputes are made by committees rather than the full
board of such entities, creators must have equal representation on
those committees as well. [principle explained]

International

Collection of International Royalties: Musician
shares of statutory or other royalties collected overseas by musician
organizations for the use of US works must be paid directly to the
musician or its collective agent. If any taxes are withheld from
foreign royalties, the artist should be the beneficiary of any foreign
tax credits arising from such tax withholdings. [principle explained]